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  • Cultural challenges in oil and gas industry management


    R. Weijermars, V. de Jong and K. van der Kooi

    Professionals in the international oil and gas business are naturally endowed with a range of human emotions and now have their roots in an increasing diversity of cultures. Therefore, the interaction between social groups and proper management of human emotions must be continually optimized in an industry dominated by formidable technical challenges that relies on a multicultural workforce to solve those challenges. The impact of cultural diversity on business efficiency is certainly not new to this business, but has steeply intensified due to globalization. The increase in energy demand and unequal access to reserves has led to a situation where International Oil Companies (IOCs) struggle for access to hydrocarbon reserves, controlled by National Oil Companies (NOCs). As a result, energy negotiations and relation management now involve stakes higher than ever before. Consequently, any flaw in effective communication between stakeholders may have an adverse impact on the outcome of the business cooperation-causing loss of future business value.

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